Lacking Information in the Notes to Financial Statements
7. The Notes to Financial Statements (FS) of the Municipality for the year ended
December 31, 2024, did not provide sufficient disclosures on several key accounts,
including advances, other receivables, accounts payable, due to officers and
employees, trust liabilities, other deferred credits, and other payables, contrary to
Sections 127 and 129 of IPSAS No. 1, thereby diminishing the transparency and
usefulness of the FS for users and stakeholders.
7.1. Paragraph 127 of the International Public Sector Accounting Standards (IPSAS)
No. 1- Presentation of Financial Statements states that the notes shall:
“(a) Present information about the basis of preparation of the
financial statements and the specific accounting policies used.
(b) Disclose the information required by IPSASs (International
Public Sector Accounting Standards) that is not presented on the
face of the statement of financial position, statement of financial
performance, statement of changes in net assets/equity, or cash
flow statement; and
(c) Provide additional information that is not presented on the face
of the statement of financial position, statement of financial
performance, statement of changes in net assets/equity or cash
flow statement, but that is relevant to an understanding of any of
them.”
7.2. Moreover, Section 129 states that notes are normally presented in an order that
helps users understand the financial statements and compare them with those of
other entities. It shall include supporting information for items presented on the face
of the statement of financial position, statement of financial performance, statement
of changes in net assets/equity, or cash flow statement, in the order in which each
statement and each line item is presented.
7.3. The financial statements of the Municipality as of December 31, 2024, showed the
following balances:
Name of Account Account Balance
Advances
Advances for Operating Expenses ₱ 68,910.11
Advances for Officers and Employees 2,000.00
Advances for Special Disbursing Officer 525,000.00 ₱ 595,910.00
Other receivables – Current 1,583,218.77
Accounts Payable 14,059,061.35
Due to Officers and Employees 341,840.11
Trust Liabilities 47,636,625.79
Other Deferred Credits 5,114,353.44
Other Payables 309,589.88
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